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45i/2 Federa! Register/ Vol. 66, No. 11 / V/ednesday; January 17, 2001 /Rules and Regulations <br />beyond the scope of today's rulemaking. <br />However, we do not agree that the <br />section 404 program is inconsistent with <br />federalism principles. Controlling [he <br />impacts of pollution and protecting <br />natural resources has long been a matter <br />of joint Federal and State concern, and <br />the Federal government long has <br />legislated in the field of environmental <br />pollution control and resource <br />protection. Section 404 does not <br />constitute conventional land use <br />planning or zoning, but instead is a form <br />of environmental protection and <br />pollution control that leaves the <br />ultimate determination of land use to <br />State and local authorities consistent <br />with Federal pollution control <br />requirements. In a case involving <br />impacts of mining on Federal lands, the <br />U.S. Supreme Court expressed the <br />distinction this way: "Land use <br />planning in essence chooses particular <br />uses for the land; environmental <br />regulation, at its core, does not mandate <br />particulaz uses of the land but requires <br />only that, however the land is used, <br />damage to the environment is kept <br />within prescribed limits." (Cnlifornio <br />Coastal Commission v. Granite Rock <br />Co., 480 U.S. 572, 587 (1987)). Section <br />404 does not dictate the particular use <br />for a parcel of property; it regulates the <br />manner in which the proposed use can <br />be accomplished by avoiding andior <br />mitigating the environmental impacts of <br />a discharge of dredged or fill material <br />into waters of the U.S. <br />One commenter argued that the <br />proposed rule unlawfully expanded <br />Constitutional limits to the Corps' <br />ability to protect biological resources, by <br />including protection of habitat with <br />significant biological value but little or <br />no commercial value. The commenter <br />stated that such habitat does not involve <br />interstate commerce, and as a result is <br />beyond Federal powers and should be <br />protected by State and local <br />governments. This issue is not within <br />the scope of today's rulemaking and <br />raises questions about the definition of <br />"waters of the U.S." which aze currently <br />pending before the U.S. Supreme Court <br />in SWANNC. In addition, nothing in <br />today's rule limits a State or local <br />government's ability to protect habitat <br />and other resources. <br />One commenter suggested that <br />Federal regulation is not necessary <br />because ample State and local authority <br />exists to protect wetlands. Again, this <br />issue is beyond the scope of today's <br />rulemaking. We disagree about the lack <br />of a need for a Federal presence in <br />wetlands regulation. The Federal <br />wetlands program both addresses <br />interstate issues arising from wetlands <br />protection, and helps support the States' <br />own environmental objectives. For <br />example, the section 404 program helps <br />protect States from the effects that <br />filling of wetlands in one State may <br />have on water quality, flood control, <br />and wildlife in another State. States <br />with wetlands programs might <br />coordinate closely with the Federal <br />program, as a means of avoiding <br />duplication and reducing any <br />administrative burden. For example, <br />States might choose to coordinate their <br />environmental studies with Federal <br />initiatives or to use Federal expertise in <br />identification and mapping of wetlands. <br />We also note that in the SWANCCcase, <br />eight states filed an omicus brief <br />explaining the benefits of 404 regulation <br />to the states and expressing their <br />support for such regulation (CA, IA, ME, <br />NJ. OK, OR, VT, and WAJ. <br />One commenter argued that no <br />Federal reason has been demonstrated <br />for regulating activities such as ditching <br />and channelization, and the proposal <br />should not be finalized until an <br />economic analysis is completed that <br />supports a valid Federal reason to <br />"expand" the Corps' authority. Another <br />commenter noted that the NMA <br />decision has forced a number of States <br />to incur significant financial costs by <br />acting to stem further wetlands <br />destruction, and that limited funding <br />has prevented some States from <br />stepping into the post-NMA loophole. <br />We note that today's rule does not <br />regulate on the basis of ditching and <br />drainage activities, but instead on the <br />presence of a discharge of dredged <br />material into waters of the U.S., as <br />called for under the CWA. Today's rule <br />does not expand the scope of CWA <br />section 404 program jtn•isdiction, nor <br />establish a new program or new <br />required processes affecting the <br />regulated community. For these reasons, <br />we do not agree that today's rule <br />requires an economic analysis such as <br />that called for by the commenter. <br />We note that many Federal <br />environmental programs, including <br />CWA section 904, were designed by <br />Congress to be administered at the State <br />or Tribal level whenever possible. The <br />clear intent of this design is to use the <br />strengths of the Federal and State and <br />Tribal governments in a partnership to <br />protect public health and the Nation's <br />resources. EPA has issued regulations <br />governing State and Tribal assumption <br />of the section 404 program (40 CFR part <br />233). The relationship between EPA and <br />the States and Tribes under assumption <br />of the section 404 Program is intended <br />to be a partnership. With asstmption, <br />States and Tribes assume primary <br />responsibility for day-to-day program <br />operations. EPA is to provide consistent <br />environmental leadership at the <br />national level, develop general program <br />frameworks, establish standazds as <br />required by the CWA, provide technical <br />support to States and Tribes in <br />maintaining high quality programs, and <br />ensure national compliance with <br />environmental quality standards. <br />Currently two States (New Jersey and <br />Michigan) have assumed the section 404 <br />program. <br />One Tribal commenter felt that the <br />proposed rule impinges on Tribal <br />sovereignty, in that it does not allow <br />Tribal decisions to undertake ditching <br />activities for flood control without <br />Federal review. This commenter also <br />contended that the agencies did not <br />comply with Executive Order 13084 <br />which would have required that the <br />agencies consult with the Tribes on the <br />proposed rule under certain <br />circumstances. The commenter stated <br />that the agencies' conclusion that the <br />proposed rule will not significantly <br />effect Indian communities nor impose <br />significant compliance costs on Indian <br />Tribal governments is erroneous. As <br />mentioned above, today's rule does not <br />change program jurisdiction. In <br />addition, it does not create any new <br />formal process. In fact, unlike the <br />proposal, the final rule does not employ <br />a rebuttable presumption, and also has <br />been clarified to expressly provide that <br />it does not shift any burden in any <br />administrative or judicial proceeding <br />under the CWA. We thus believe the <br />rule does not create an impingement [o <br />Tribal sovereignty or significantly affect <br />Tribal communities. <br />IV. Administrative Requirements <br />A. Paperwork Reduction Act <br />This action does not impose any new <br />information collection burden or alter or <br />establish new record keeping or <br />reporting requirements. Thus, this <br />action is not subject to the Paperwork <br />Reduction Act. <br />B. Executive Order 72866 <br />Under Executive Order 12866 (58 FR <br />51735, October 4, 1993), we must <br />determine whether the regulatory action <br />is "significant" and therefore subject to <br />review by the Office of Management and <br />Budget (OMB) and the requirements of <br />the Executive Order. The Order defines <br />"significant regulatory action" as one <br />that is likely [o result in a rule that may: <br />(1) Have an annual effect on the <br />economy of 5100 million or more, or <br />adversely affect in a material way the <br />economy, a sector of the economy, <br />productivity, competition, jobs, the <br />environment, public health or safety, or <br />